Midterm #2 Practice Problems

# Midterm #2 Practice Problems - Midterm#2 Practice Problems...

This preview shows pages 1–3. Sign up to view the full content.

Midterm #2 Practice Problems 1. Old McDonald’s Farm had the following in its year 2000 inventory: Animal Category u Pigs: Historical Cost, \$35,000; Net Realizable ValUe, \$32,000; Replacement Cost, \$30,000 u Goats: HC, \$18,000; NRV, \$19,400; RC, \$17,400 u Chickens: HC, \$14,000; NRV, \$11,300; RC, \$12,000 ProdUce Category u Corn: HC, \$5,000; NRV, \$6,200; RC, \$5,250 u Wheat: HC, \$7,800; NRV, \$7,600; RC \$7,600 Old McDonald’s profit margin is 35% above historical cost. (a) CompUte the reqUired inventory balance Under LCM Using the item-by-item, category, and total inventory methods. (b) Give the reqUired joUrnal entry, Using the Allowance Method, for the method that redUces net income the least. 2. KaUffman’s had the following inventory balances: Date Price Index Inventory ValUe 12/31/99 100% \$100,000 12/31/00 120% \$190,000 12/31/01 130% \$290,000 idterm #2 Practice Problems https://www.coUrses.psU.edU/acctg/acctg471_adj100/mid2hw.htm of 3 3/27/2011 10:49 PM

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
At what value will Kauffman’s report the 2001 layer of inventory under Dollar Cost LIFO? 3.
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 06/17/2011 for the course ACC 620 taught by Professor Smith during the Spring '11 term at Alabama A&M University.

### Page1 / 3

Midterm #2 Practice Problems - Midterm#2 Practice Problems...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online